Naples Refinance HARP 2.0

Home Affordable Refinance Program will undergo some major changes this year. Late last year the administration announced changes that take effect in March 2012. Naples Refinance clients will be able to refinance their Naples home without any equity. Naples Refinance borrower that are currently"underwater" on their mortgages can refinance. The current program only allows 125% loan to value caps on existing mortgages. The original mortgage needs to be prior 5/31/2009 and currently owned by Fannie Mae or Freddie Mac.  An example of 125% loan to value (LTV) would be as follows: You currently owe $125,000 and your home appraises at $100,000.

You can check to see if your mortgage is owned by Fannie Mae or Freddie Mac by clicking on the highlighted portion of the text.

 Being able to refinance your Naples mortgage will have a drastic impact on keeping your home while reducing your monthly payment.  This will reduce foreclosures and defaults for homeowners.

The GSE ( Government Sponsored Entities) also known as Fannie Mae and Freddie Mac believe this program will cut down on delinquency rates. This program will let Naples refinance homeowners lower their monthly payments considerably while impacting our economy in a positive way.

Home Affordable Refinance Program ( HARP) is currently available for borrowers with restrictions. The limitations are so great that many cannot refinance their Naples homes due to not being qualified. Below are the major changes that will effect Naples Refinance market:

1. The ability be re-subordinate a current second mortgage or home equity line of credit.
2. Removal of the 125% cap making a refinance available for anyone that is "underwater" on their current mortgage.
3. Elimination of higher adjustments to the rate for higher loan to value ratios.

These new rules will make it possible to complete a successful Naples Refinance.

Naples HARP 2.0 has been extended until the end of 2013. The SWFLA market home equity was hit considerably over the past six years. HARP 2.0 should have an impact on certain borrowers.
Core Mortgage Financial has Naples Refinance HARP 2.0 loan originators that can assist you in determining if you qualify for this new product. The entire program will be rolled out in March 2012. We plan on releasing another informational blog on Naples Refinance HARP 2.0 next month. Please don't hesitate to contact us at 239-514-2673 with any questions!

Core Mortgage Financial
239-514-2673 office

Below are some helpful terms defined:

Loan to Value Ratio (LTV)

The relationship, expressed as a percentage, between the amount of the proposed loan and a property's appraised value. For example, a $75,000 loan on a property appraised at $100,000 is a 75% loan-to-value.

Mortgage:
Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.

Note:
The evidence of indebtedness for a mortgage loan. A note is the instrument evidencing the indebtedness secured by a security instrument that sets forth the amount the owner owes the lender and the manner in which the debt is to be satisfied. The note establishes the payment terms, conditions under which prepayments may be made, and the lenders rights in the event of default. A written agreement between the mortgagor and the mortgagee specifying the amount and terms of repayment for a loan.

NMLS #849597
NMLS #344608
Rates, Programs, Guidelines are subject to change without notice. This blog is for informational purposes only. Please contact your mortgage advisor for further details.